Twenty-four million Americans are likely to take out a personal loan this year, according to a Bankrate.com survey, including 10 million who are very likely to get the loan and 14 million who are somewhat likely.
“I think the actual number will be even higher,” said Todd Albery, the CEO of Quizzle.com, a Bankrate company. “A lot of people don’t plan for a personal loan until their roof leaks or their car breaks down. Since three in 10 Americans have no emergency savings whatsoever, they’re just one unplanned expense away from needing cash in a hurry.”
Personal loans are unsecured loans that don’t require borrowing against something of value, such as a house or automobile. This makes them attractive to the large number of consumers who don’t have much savings or home/car equity. In addition to financing emergency expenses, personal loans can also be used for home improvements, debt consolidation, and other purposes.